The Consumer Reports Sentiment Index slimed to 48.7 in January, up from 45.1 in December and 44.1 a year ago. This is the highest level it has been at in two years, Consumer Reports said.

“Some of the rise can be attributed to the seasonal January jump, but not all of it,” said Ed Farrell, a director in the Consumer Reports National Research Center. “Overall, consumers are feeling better about their financial situation and hopefully this will translate into increased economic engagement in 2011 if this trend continues.”

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